Bears had a pleasant break from the uptrend yesterday, pulling back to close on the low just above support at the 50 DMA (2107) and the daily middle band (2104). On the bigger pictures the bears
haven't accomplished anything yet, and to take back control of the market they need a closing basis break below the daily middle band. Until we see that this is likely to be just be another buyable dip. SPX daily chart:
That's not to say that no support levels were broken yesterday. The 5DMA broke, but not in the first three days after the break up which would have been very bearish. SPX closed under the 50 hour MA, but the break is marginal so far and just tells us that this is not a strong uptrend, which isn't news. Bears need to do more today if they want to demonstrate that the 2015 high has already been made. SPX 60min chart:
I'm still working on how my work will be split between here and my new swing trading site
theartofchart.net in collaboration with
Stan Nabozny. I think for the moment I'm going to try posting a chart that belongs there at the bottom of each of my morning posts & see how that goes.
This chart is the falling wedge breaking up on GC on an hourly buy signal. We're expecting a reversal pattern to form and then a likely full retrace of the wedge back over 1200.; GC 60min chart:
I'm leaning bullish today unless bears can break below daily middle band support. If we see an intraday break under 2103 then the odds will shift towards the 2015 high being made and on a close below the middle band I'd be looking for a probable retest of 2072 area support.
No comments:
Post a Comment